Mumbai: Supported by a sizable increase in retail assets, mortgage major HDFC on Monday posted 19 percent jump in its net profit to Rs 1,151.12 crore for the quarter ended September 2012, in line with expectations.

The company had posted a net profit of Rs 970.70 crore on the standalone basis in the same period last year.

The company's total income increased to Rs 5,277.2 crore during the September quarter from Rs 4,169.14 crore in the corresponding period last fiscal.

HDFC Vice Chairman and Chief Executive Keki Mistry attribued profit growth to a spurt in advances to the retail borrowers who accounted for 78 percent of the credit growth.

The growth in individual loans was about 31 percent and the average loan size now stands at Rs 21.5 lakh.

HDFC's gross non-performing assets ratio improved to 0.77 percent of the advances compared to 0.82 percent in year-ago period, making this quarter the 31st consecutive quarter when it showed an improvement.

Asset book grew 22 percent up to Rs 1,55,128 crore, helping it to achieve an 18 percent rise in the net interest income at Rs 1,634 crore.

"HDFC reported proft after tax was in line with estimate, however net operating income was 5 percent below our estimate reported," Rikesh Parikh, VP-Markets Strategy and Equities, Motilal Oswal Securities said.

The company scrip closed at Rs 750.50 on the BSE, down 0.21 percent from its previous close.

The company saw a 0.07-0.08 percent dip in its net interest margin at 4.2 percent, Mistry said, adding that the spreads-- arrived at by subtracting interest earned and interest expended-- was unchanged at 2.27 percent.

Going ahead, HDFC is targeting spreads in the 2.20 to 2.30 percent band and an overall credit growth of up to 20 percent, he said.

HDFC's total capital adequacy stood at 16.7 percent with the core tier-I accounting for 14.1 percent as of September 30, 2012.

(Agencies)

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